Challenges and Strategic Approaches in Managing Change at Deloitte

This report discusses the challenges faced by Deloitte due to the economic changes caused by UK leaving the European Union. It focuses on the role of the human resource department in implementing strategic approaches to manage and support planned and unplanned changes. The report also highlights the importance of addressing resistance to change and provides insights into the strategic approaches that can be adopted by Deloitte.

Leading and
Managing

Contents
INTRODUCTION......................................................................................................................3
Changes according to present scenario, need of planned or unplanned approach.................3
Management and support in planned/unplanned change by use of strategic approaches for
dealing with resistance to change...........................................................................................4
Main challenges for human resource department, strategic approaches available and special
considerations to possible resistance to change......................................................................8
CONCLUSION........................................................................................................................11
REFERNCE.............................................................................................................................12

INTRODUCTION
Change is a vital part of every organisation and it affects every organisation in their
overall functioning and management. Changes taking place in the external environment
affects the internal management of a organisation in the most vital manner. Such as the
prospect of UK leaving the European Union, organisations have to face lot of uncertainties &
changes. There are many uncertainties lying on this result which is leading towards lot of
management that has to be done by HR and professionals to provide support to their
employees in the medium term (Shah. and Tyagi, 2017). Present report is based on Deloitte
which is a multinational service network and is part of big four accounting organisations and
is one of the largest professional services in world according to revenue earned and
professionals who are working in this organisation. Its headquarters are present in London,
UK (Laine, 2018). The preset report deals with the challenges that are taking place in the
organisation because of the economical factor prevailing outside the organisation and the
main role played by human resource department in implementation of such changes in such a
way with use of certain strategies. Such strategies help in dealing with the negative impact of
changes in most appropriate manner.
Changes according to present scenario, need of planned or unplanned approach
There are many business that are willing to adjust themselves according to the
prospect of UK leaving European Union as there is a continuous period of cahneg and
uncertainty. So there is a requirement of support by professional and HR departments to
support their employees in the medium term. UK has held a referendum and then the majority
is voting to leave the European Union. There is a need to image such strategic and
oepartional changes by use of some planned or unplanned approaches according to the
feasibility of the organization.
Strategic and operational importance of change:
Strategic change is a process that is related with shifting of thought, culture or mission
of a particular business organisation. On other hand operational change is related with the
initiates that involves the change in way employees will work and leading changes in the
overall systems or process and may be both in some cases there are changes such as in the
present scenario the UK leaving the European Union referendum that is taking place in

European union is going to lead towards lot of changes for organisations and among those
there are certain changes that take place in the internal functioning of Deloitte.
Strategic change: It is a change that is related with the decision of the management
of a organisation or is in consideration with maximum utilisation of all the resources that can
help in improving overall performance of a business organisation. In case of Deloitte it will
lead towards focussing on achievement of the vision and objectives of this organisation at
same time dealing with all the changes that are happening because of UK leaving the
European Union referendum. Such as there must guidelines set for new quality standards that
are better and higher than from the present quality standards. So, that even if there is any
negative impact because of UK leaving EU, the organisation can deal with it with the help of
product quality and customer satisfaction.
Operational changes; There are some changes that are in relation with the
technological advances or according to the efficiency and quality of professional services that
are being offered by a particular organisation (Gautam, . and Sharma, 2017). In globalisation
there are certain novel techniques that have been developing and in case of organisation that
are part of health services. In case of Deloitte, with the changes because of UK leaving EU, is
also going to possess a impact on the overall operations and functions. There are
Planned and unplanned changes:
Planned change takes place in a organisation when there are deliberate decisions that
are taking part in the organisation on other hand Unplanned changes are those that are result
of some unforeseen circumstances that are taking place in the external business environment.
In the present case, there will be planned changes that will be taking place in the
organisation. Such as there is requirement of some new recruitment that has to be made in
order to deal with the changes and apart from this there is also need of training that has to be
provided to the exiting workforce so that their skills can be upgraded and increased to handle
to increased responsibilities assigned to them in the course of business. In present scenario
there is requirement to take a planned approach in order to deal with the negative impacts of
such challenges for the organisation. So, it can be concluded by saying that planned change is
something that is part of UK Leaving EU and therefore there is a requirement of high amount
of planned strategies that should be planned and then implemented by Deloitte in order to
deal with the negative effects of such prospective changes in future.

Management and support in planned/unplanned change by use of strategic approaches for
dealing with resistance to change.
Human resource department is the section in every organisation that posses the
responsibility of managing the employees of an organisation (Deshler, 2016). It basically
consists of four major elements such as management of the organisation, personnel
administration management and managing the overall industry. The change can be
understood with the help of Ans-off matrix to understand what can be some of the strategic
approaches that can be used for building up of strategies by Deloitte as mentioned below:
Organisational development approaches
Ans Off matrix is a tool of strategic planning that can help in providing a framework
to help various executives, markets and senior managers of an organisation to form various
strategies to deal with such challenges that are taking place in the external environments and
formation of such strategies lead to dealing with such challenges in a more efficient manner:
Market development: this is the initial stage at which an organisation is willing to
target a new market with the existing product (Flora, 2020.). In this particular strategy there is
no new product that is being launched or added by an organization but with the use of
existing professional services there is a complete new segment of market that is targeted by a
organisation.
Market Penetration: It is a strategy that is part of Ans of matrix in which there can
be targeting in which both the existing professional services are being expanded and
strategies on the existing market. So this is a strategy that can be used by a organization
where they posses prospect of higher growth in their existing market. In this strategy there are
no new product that are added or new variants that are added by the organisation.
Diversification: It is a strategy where the product and the market segment both are
new this means that in this strategy there are launching of new product in the new market.
This strategy is very helpful in case of expansion of an organisation towards a complete new
location.

Product development: In the product development strategy there is use of new
product in the existing markets. In this strategy where there are new professional services that
are launched by an organisation apart from their existing product range (Crowley, and Jordan,
2017). This particular strategy will be suitable only if the exiting customer base is very large
and loyal and can help in attracting them towards increasing their revenue for their new
professional services.
Above discussed are some of the strategic approaches that can be adopted by a
organization for the purpose dealing with the overall economic changes taking place in the
macro environments so that the negative impact can be minimised by use of such approaches.
At same time, if there is any negative impact on the overall revenue of the organisation then
that can also be managed by the usage of such strategies.
In the present case there is a economic change that is UK leaving European Union is
taking place in the external environment and because of that there are certain implications on
various organisations that are part of UK and having headquarters in London. In Deloitte to
deal with such changes the most appropriate strategy will be to adopt market development
where to enhance their sales they have to target a completely new segment of market. As with
lot of already changes going in the organization in terms of new hiring and training the
present workforce it is not possible to make some addition launches. So, it becomes very
important to launch their new websites or some new physical stores at locations where they
are not having any presence in the present situation.
External market analysis:
For making a detailed analysis of the external market there are certain tools that can
be used such as in the present scenario, PESTLE analysis is used to understand the changing
factor that are part of economic environmental and its impact on the overall functioning of
the organisation.
Political factors: These are the factors that are related with the overall changes that
are taking place in the external environments because of the administrative policies of
government. Deloitte is having its headquarters in UK so all the decision that are taken by
government of UK is going to possess an impact on the functioning of this organisation. Such
as the conditions of European market after Brexit and apart from this the overall
administration policies of Trump is going to lead towards adoption of such changes so that
they can cope up with such changes and survive in the high competitive environment.

Economic factors: These are the factors that are related with the prevailing economic
conditions of the economy of the country to which Deloitte belongs to that is UK. The
decision of UK leaving European Union is one of the major economic factors that is leading
towards Deloitte implanting lot of changes and apart from this other economic factors that
can probably impact the functioning of this organisation consist of the fluctuations in the
global GDP and overall fluctuations in the rate of Dollar with respect to other countries
currency value.
Social factors: It consists of the factor that is associated with the changes preferences
of consumers and especially society as a whole. It leads to large amount of changes that have
to be adopted by an organisation with time as this is a factor that is never consistent and
keeps on changing very frequently with time. So, in the present scenario of Deloitte it can be
said that the major social factor that has impacted this organisation is the changing
preferences of Millennial generation towards using e-commerce sites for making their
purchases has lead to a situation where there is a urgent need to make expansion towards such
online mediums in order to survive in the scenario of higher competition.
Technological factors: These are the factors that are related with the changing
technology and the trends in technology. So, in the present situation there has been lot of
technological changes such as in terms if social media involvement has increased apart from
this there has been high amount of digital disruption that is taking place. Deloitte has to adopt
all such technological up gradations very fast so that they can move along with the
technology.
Legal factor: This factor in the Pestle model is related to the legal rules and obligations that
are required to be compulsory followed by a organisations and have been formed up by the
concerned regulatory authorities of their country (Ramankutty, and Pujar, 2017). Such as in
UK there are espionage practises that provide guidelines for organisations and have to be
followed up. Apart from this there are some legal requirements that have to be followed with
respect to diversification required by acquisition of digital media as a technology of
marketing so that in any way organisations are not misleading their customers.
Environmental: It consists of the overall obligations and responsibilities of all the
organisations towards adoption of certain changes for protection of environmental and having
sustainable development (Schultz, 2016). Such as for Deloitte there are some strict guidelines
that in the overall process of production and reaching of the final product to the consumer in

any way they are not posses any harm to the environments by emission of any types of
harmful gases or substances that can lead to degradation of the external environment, there
are certain strict guidelines in this regard and they have to be adopted otherwise there can be
situation of high amount offense.
Main challenges for human resource department, strategic approaches available and special
considerations to possible resistance to change
Key areas of Individual and organisational resistance to change
Lewin’s model of organisational change: According to the views of Lewin’s the
changes in a organisation are because of eh progression shift that is taking place between two
static states (Shah, ., Irani, and Sharif, 2017). There are basically three states that are part of
this model of change that can help organisation in implementation and adoption of change in
a more better and appropriate manner.
First stage: It is the first or the initial status of the organisation. Such as, in present
scenario, Deloitte is a UK based organisation that has to deal with the changes taking place
on the external business environment because of UK leaving European Union (Raman, 2019).
So, this is the stage that is related with the status of this organisation with the normal
conditions. It is regarded as the unfrozen stage as in this stage there is not much changes that
have been implemented in the organisation. So, there is a requirement that at these stage
leaders make attempts to make their workforce mope towards the exact change that they are
willing to recruit in the overall process.
Changing stage: This is the second stage in which there is actually the change that
has to be implemented in the organization by the managers & leaders. At this particular stage
there is, new strategies that are formed for implementation of change. Such as in present
scenario of Deloitte there will be attempts made for adoption of some new strategies for
making new recruitment and providing training to existing workforce so that they are able to
update their skills to deal with all the high pressure of work (Akka,. and Khaber, 2018). So,
there will be complete new changes that are going to be adopted by the organization at this
particular stage of the Lewins model of change.
Refreezing stage: It is the stag at which change has been finally implemented and
this stage has to be freeze by the organisation. Such as in Deloitte there has been the overall

process of new hiring has been started by the concerned authorities and the human resource
department and after this process will be completed there will be this stage freeze as for a
particular period of time there is no new strategy that has to be adopted by the organisation.
Challenges from change:
There are certain challenges that have to be faced by the organisation and especially
the human resource department while implementation of the overall process of change as
discussed below:
Resistance to change: All the employees who are working in various functional
departments and across different levels are not willing to accept the changes as the new
recruitment and hiring which is being made in Deloitte may lead to a threat on the represent
working atmosphere and increase the competitive nature (Borich, 2019). That is not much
feasible from employees point of view. So, it is a big challenge for the human resource
managers and leaders to deal with ten high amount of resistance of such employees towards
the implementation of changes that has to be done in the organisation.
Lack of reliability of employees on the planning process: The new plans and
strategies related to change in the organisation might result into higher work pressure on the
employees as compared to present working pressure that might lead to lack of reliability of
Issues related to salary and compensation: many times with the increased
responsibilities on the employees they are not willing to work with the present of
compensation and they began demanding higher amount of pay (Helu, Joseph, and Hedberg
Jr, 2018). So, this is a big challenge for hr department of the Deloitte to make their employees
understand and willing to work with their presents salaries so that there is no increased
burden on the organisation in financial terms.
Strategies of human resource department to deal with the challenges:
There are three basic components that is identified in a organisation such as leader,
environment and subordinates. The most critical thing is that these entire three components
are independent. There are certain strategic approaches that can be used for purpose of
change as discussed below:

 The major responsibility of the leaders and manager that are part of human resource
department is that they must make efforts to creation of a positive working
environment that the employees might find feasible to work in.
 Managers should make efforts to identify some unique potential of their
subordinates and then apply them effectively in their organisation.
 Managers should guide the overall workforce towards achievement of a commonly
lead down goal of their organisation. And in all these vases the ultimate output
should in terms of increased output of employees at the workplace.

CONCLUSION
From the above started report it can be said that there are certain changes that have to
be made in an internal functioning of organisation to deal with the overall changes that are
taking place in the external economic environment of organisation. The most crucial role
played in this context is by the HR management department of the organisation. They have to
form certain strategies in order to deal with the overall challenges that are taking place in
their organisation. Resistance to change is one of the most popular challenges that have to be
dealt by the human resource department and they have to make efforts to caret ten negative
attitudes of environments into positive so that they are able to accept the changes in a better
manner.

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Online
Managing and communicating change, 2020 [Online] Available through
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